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1 SAP SNC 7.0 Supply Network Collaboration SAP SNC Solution Overview

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  • 1SAP SNC 7.0Supply Network Collaboration

    SAP SNC Solution Overview

  • 2 SAP 2009 / Page 2

    SAP SNC Supply Network Collaboration

    This unit contains an overview about the SAP SNC 5.1 regarding the following topics:

    z SNC Overview z SNC Market & Customer situationz SNC Roadmap

    Contents:

  • 3 SAP 2009 / Page 3

    Unit Objectives

    z Explain the Esentials of SAP SNC 2008z Explain the processes of SAP SNC 2008 z Name the high-level delta features of SAP SNC 2008

    At the conclusion of this unit, you will be able to:

  • 4 SAP 2009 / Page 4

    SAP SNC Supply Network Collaboration

    1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

  • 5 SAP 2009 / Page 5

    SAP SNC Supply Network Collaboration

    1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

  • 6 SAP 2009 / Page 6

    Lack of Visibility Beyond the Four Walls

    Poor CustomerService

    Globalization and Outsourcing

    Positioning: Customer Challenges and Trends Drive Strategy for Supply Chain Collaboration

    Globalization & Outsourcing Have resulted in stretched supply chains and increased risk. Timely analysis, response,

    and resolution of supply chain issues is Impossible due to lack of control.

    Lack of Visibility beyond the four walls Anticipating the next supply chain disruption is not possible due to lack of visibility.

    Rising Energy and Fuel Costs Have increased cost and challenges of compliance and transportation

    Poor Customer Service Inability to sense and respond to real time demand signals

  • 7 SAP 2009 / Page 7

    Positioning: Evolution of Supply Chain Networks

    Increase Supply Network Visibility& Collaboration *now the main source of competitive advantage: Real time visibility of inventory, incoming supply, component consumption and carrier information. And the ability to share this information collaboratively with all stakeholders in a timely manner Collaborative Demand & Supply Planning A recent Economist study cited that 80% of executives expect demand not supply to drive future production of goods and services. This can only be achieved through a focused effort to capture and manage demand data. As companies move to a more demand-driven approach, they must first capture and manage demand data from the diverse channels they serve. Then there is the cross-departmental, integrated sales and operations planning (S&OP) process that involves creating and comparing your demand plan and your supply plan, then reconciling these with your financial plan. The S&OP team should then evaluate the risks and assumptions involved and produce one comprehensive plan that addresses key tradeoffs between sales, production, and finance. An finally leverage integrated planning processes that enable trading partners to synchronize demand and supply plans and respond to network events and changes. This involves setting goals and forecasts, as well as optimizing and scheduling time, materials, and other resources at the strategic, tactical, and operational levels.Streamline Transportation & Fulfillment -Strive to Deliver the Perfect Order Companies striving for the perfect order. Companies need warehouse, transportation, available-to-promise, and event management capabilities integrated with each other on a single platform; this fulfillment network, if its real-world aware, enables an organization to monitor information, measure activities, notify involved parties, and execute accordingly so that customers receive that perfect order.Minimize Supply Chain Risk & Compliance Across the Network As supply chains get stretched it is increasingly important to manage Risk and Compliance at all levels. At a strategic level by designing resilience into the network, tactically to balance opportunity with risk and during Execution by sensing & responding to events in the network.Increase Real World Awareness In order for the network to be responsive, they need to constantly be sensing real world events before and as they happen AND devise intelligent strategies to respond to them in a timely manner. Rise of technologies like RFID, Sensors and Asset monitoring capabilities are enabling companies to detect, collaborate and respond to real time events. Business Networks against Business Networks

  • 8 SAP 2009 / Page 8

    Positioning: SAP SNC A 360 View On Collaboration

    Extend Your Enterprise to Encompass Suppliers, Contract Manufacturers and Customers

    SAPs Collaboration Engine: Out-of-the-Box Collaborative Business Processes

    Innovative: Intuitive, Easy to Learn, and Easy to Use Web-User Interface

    Utilizes SAP NetWeaver Platform: Open and Real Time Communication Between Your Internal Systems and Customers & Suppliers

    Real-Time Collaboration between Suppliers and Customers using out-of-the-Box Collaborative Business Processes

    Automate End-to-End Processes to enable Inventory and Requirements Visibility for Accurate Replenishment & Invoicing

    Empower your Employees and Network Partners with Intuitive, Easy to Learn, and Easy to Use Web-User Interface

    Improve Data Quality and Accuracy using Standards based & Service enabled Connectivity between your SAP ERP and partner systems

  • 9 SAP 2009 / Page 9

    Powered by SAP NetWeaverXML Message Exchange

    SAP SNC 7.0

    The Enabler:SAP Supply Network Collaboration (SAP SNC 7.0)

    Drive your Business Vision and Strategy The Focus of SAPs Strategic Supply Chain

    Collaboration Efforts Real-Time Collaboration with Suppliers and

    Customers Out-of-the-Box Collaborative

    Business Processes

    Execute your Collaborative Business Processes Automated End-to-End Processes Enable Inventory and Requirements Visibility Improve Data Quality and Accuracy

    Empower your Employees and NetworkPartners Intuitive, Easy to Learn, and Easy to Use Multiple Alert and Notification Methods Native Web User Interface

    Supplier Managed Inventory

    Master Data DataValidation

    Release Process

    ExceptionManagement

    Supply Network

    Inventory

    Purchase Order

    Process

    Dynamic Replenish-

    ment

    Web-Based User Interface

    Business Processes

    Basic Services

    User Interaction

    Kanban Process

    Delivery Control Monitor

    Responsive Replenish-

    ment

    Contract Manufacturing

    Purchasing

    Demand Collaboration

    Work Order Collaboration

    Min/Max VMI

    The answer lies in the SAP Supply Network Collaboration (SAP SNC) application, part of the SAP Supply Chain Management (SAP SCM) application. This application, SAP Supply Network Collaboration, helps suppliers operating SAP or non-SAP systems execute collaborative processes through a range of supply, demand, and inventory replenishment processes.

    SAP Supply Network Collaboration helps you connect to and collaborate with your suppliers by providing easy, and seamless access to supply chain information. This application facilitates your ability to synchronize supply with demand. Offering support for raw-material, component, and contract-manufacturing suppliers, it helps you strengthen your purchasing operations and your supplier relationships with suppliers of direct materials.

    With supplier-collaboration processes, you can cooperate with suppliers of all sizes to reduce transactional costs by replacing fax and e-mail as primary modes of communication. Smaller suppliers without specialized EDI infrastructures can integrate into the supply network by setting up Web access to SAP SNC in their software landscapes. All they need is Internet access and Web browsers.

    You can deploy SAP Supply Network Collaboration as a stand-alone application, or integrate it with SAP or non-SAP back-end solutions on the customer and supplier sides. You can also operate it in a hosted environment where it serves as a joint-use platform for all business supply chain partners involved in the process.

    SAP Supply Network Collaboration supports exceptions-based processes that let your suppliers view the status of materials at customers plants, receive automatic alerts when inventory levels runs low, and respond quickly over the Web. It also supports net-demand release and purchase-order processes, a kanban process, dynamic replenishment, supplier-managed inventory (the industry-standard replenishment process), a delivery control monitoring process, a supply network inventory process, and a contract manufacturing procurement process as well as packaging and label-printing functions.

  • 10

    SAP 2009 / Page 10

    Major Industries and Their Requirements: SAP SNC

    CP: Customer Collaboration: Responsive Replenishment, Demand

    Management and In-Context Analytics High Tech: Supplier Collaboration: Contract Mfg (batch traceability, quality

    collaboration) Customer Collaboration: Demand-side process Customer Program

    managementMill Products: Supplier Collaboration (and Customer Collaboration) Variant Configuration

    supportChemicals/Pharma: Supplier Collaboration: Contract Mfg with batch handlingA&D: Supplier Collaboration: Contract Mfg (with batch, serial number handling)IM&C: Supplier Collaboration: General

    Please note that this is only an extract of the major industries. SAP SNC can be used moreor less in all industries and they have also their own industry-specific requirements

  • 11

    SAP 2009 / Page 11

    SAP SNC Supply Network Collaboration

    1. SAP SNC Fundamentals2. Customer Collaboration3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

  • 12

    SAP 2009 / Page 12

    My Company

    Customers

    DemandCollabor

    ation

    Forecast

    (Baseline/Promotion)

    Revised Forecast

    (Baseline/Promotion)

    SAP SNC Customer Collaboration Demand Collaboration

    Sales (Baseline/Promotion)

    Demand Forecast Collaboration allows comparison and consensus between consumption data and customer transmitted forecast

    Demand Forecast Collaboration. . .

    Offers a time bucketed, on-screen, collaboration and workflow driven capability to reach a consensus forecast between customers and suppliers

  • 13

    SAP 2009 / Page 13

    My Company

    Customers

    ASNs

    Inventory NumberRanges

    BaselineOrders

    Order Forecast

    Promotion Orders

    Promotion Plans

    Responsive Replenishment

    Sales

    SAP SNC Customer CollaborationResponsive Replenishment

    Forecast

    Responsive Replenishment represents the next generation in Demand driven Replenishment

    Responsive Replenishment . . .

    Is a real-time, demand-driven, replenishment scenario between supplier and customer including up and down shifts of orders and shipments in the short term (next generation VMI)

    Manages promotional items separately thru-out end-to-end replenishment process and optimizes truck loads

  • 14

    SAP 2009 / Page 14

    My Company

    Customers

    ASNs

    Inventory

    NumberRanges

    Orders

    Order Forecast

    Min/Max Replenishment

    SAP Supply Network Collaboration Customer Collaboration Functionalities

    SalesForecast

    Min-Max replenishment is a simple stock level based replenishment process

    Min/Max Replenishment . . .

    Allows for traditional VMI replenishment scenarios using maximum and minimum stock limits as driver

    Can be used without promotional and truck load building functionality

  • 15

    SAP 2009 / Page 15

    SAP SNC Supply Network Collaboration

    1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

  • 16

    SAP 2009 / Page 16

    My Company

    PO Process

    Release Process

    SMI Process

    Kanban Process

    DCM (Reorder Point) Process

    Additional Process Features: Confirmations (Date & Qty Changes by Supplier) on Purchase Orders ASNs (Ship Notifications) On All Processes (Packaging Capability with Bar Code/Label Printing) Invoices (Supplier Creates Invoices via the Web), Includes Regular and ERS Invoices (Self-Billing) Alerts for Exceptions (Includes e-mail notifications) BW Reporting Content for Alerts and Supplier Performance based on Alerts

    DR (Forecast) Process

    Main Features: Supplier Collaboration with SAP SNC: Raw Material/Component Supply

    Purchase Order Process allows for the customer to send out Purchase Orders to the supplier using the web-based application SAP SNC. The Purchase Orders are typically generated as part of the customer's MRP run, or are manually created by the customer. The suppliers can view the PO's by status, enter free text notes and print/download as well. The supplier can enter confirmations/order responses indicating which date and quantity that can be committed to. At time of shipment, the supplier can create ASN messages as well, which together with the confirmations update the customer's ERP system.Release Process allows for the customer to send out Scheduling Agreement Release Updates to the supplier using the web-based application SAP SNC. The SA Releases are typically generated as part of the customer's MRP run. The suppliers can view the various "release updates", compare the differences between older and newer updates and print/download as well. At time of shipment, the supplier can create ASN messages as well, which updates the customer's ERP system. KANBAN Process allows for the customer to send out KANBAN replenishment signals to the supplier using the web-based application SAP SNC. The KANBAN signals are typically generated as part of the customer's MRP run, or are manually created by the customer. The suppliers can view the KANBANs by status, control cycle ID, KANBAN ID, product number and print/download as well. The supplier has access to one main screen environment for KANBAN processing ("dashboard"), from which, at time of shipment, the supplier can create ASN messages that updates the customer's ERP system.SMI allows for a shift of net replenishment planning and execution from the customer to the supplier. The supplier uses gross demand (dependent requirements) and stock balance to calculate a replenishment plan based on min/max logic, and subsequently converts the plan into Purchase Orders and ASNs at time of shipment. The PO's and ASNs are sent back to the customer's ERP system as indication of commitment from the supplier. PO's are optional in the SMI process; the replenishment plan can be converted directly into ASNs if needed.

  • 17

    Delivery Control Monitor (DCM) allows for a shift of net replenishment planning and execution from the customer to the supplier. The supplier uses stock balance updates and preset signal levels (reorder points) to understand when replenishment needs to take place. The replenishment is based on min/max inventory limits, and the DCM functionality calculates the suggested replenishment quantities using the maximum level as the upper limit.Dynamic Replenishment (DR) allows for a comparison of customer and supplier planning data in a one screen environment were deviations between customer's plan and supplier's plan are shown as absolute numbers and percentages. There are also color-coded thresholds that visualize the deviations on screen. The customer's ERP system is used for extracting data like Planned Orders and Purchase Requisitions which is shown as "customer plan" values in SAP SNC, same thing for already created PO's which are shown as "customer order" values. The supplier can send in, or enter the corresponding responses via the web, for the "supplier plan" and "supplier order" values.

  • 18

    SAP 2009 / Page 18

    My Company

    CMP (Subcon PO) Process

    Work Order Process

    SNI Process

    Additional Process Features: Contract Manufacturing Purchasing (CMP) equals Subcontracting POs in ERP (POs with a BOM)

    Changes to the components in BOM possible along with approval procedure Work Order Process offers the most granular functionality for tracking production progress at CM

    Includes BOM and Phases (routing) collaboration with approvals/reject procedure Advanced features calculate projected end date and finished goods qty in mid production WO exists only in SNC. It is initiated via a subcon PO or regular PO from SAP ERP

    Supply Network Inventory (SNI) is a time-bucketed supply and demand monitoring capability On-hand stock, supply, demand and a calculated future stock per time bucket with min/max limits for monitoring Cross-plant, cross business partner views on supply and demand including aggregation capabilities

    Main Features: Supplier Collaboration with SAP SNC: Contract Manufacturing Supply

    Real-time, synchronized, collaboration on subcontracting POs enable more accurate execution between a customer and a contract manufacturer Customer can change or cancel Subcon POs and items Approval process based on rules such as quantity and date deviations can be done via web

    UI, includes collaboration on components used Customers ERP system gets periodical updates of components consumption at the contract

    manufacturers location Includes supplier invoice creation based on shipments, or ERS handling of invoices, and

    payment status updates

    Real-time, synchronized, collaborative Work Orders enable more accurate execution between a customer and a contract manufacturer Work Orders exist as a collaborative object and facilitator of manufacturing status data

    between a customer and a contract manufacturer Advanced on-screen collaboration on Work Order initiation, changes and updates based on

    statuses Collaborate on order BOMs up front, before production starts Project finished goods end date and quantity using production phase updates Capture component consumption periodically and update ERP accordinglySupply Network Inventory is a cross-partner supply, demand and inventory monitoring and visibility process Customers, Suppliers, Contract Manufacturers and 3PLs can all update their individual

    supply, demand and inventory positions Configurable visibility concept as to which partner and user has access to another partners

    data Proactive monitoring using min/max thresholds on calculated future inventories Allows for aggregation of data across multiple plants belonging to different partners

  • 19

    SAP 2009 / Page 19

    CUSTOMER

    Main Features: Supplier Collaboration with SAP SNC: Collaboration Methods

    Web Browser

    SAP NetWeaver

    Low

    Vol

    ume

    W

    eb B

    row

    ser O

    nly

    SAP XI

    Hig

    h Vo

    lum

    e

    B2B

    Inte

    grat

    ed

    Backend System

    BackendSystems

    Up/Down Load FilesM

    id V

    olum

    e

    Web

    & F

    ile U

    p/D

    own

    Load

    s

    SUPP

    LIER

    S &

    CO

    NTR

    AC

    T M

    FGS

    Browser

    XML

    File Up/Down Load

    SNC

    Developing collaborative relationships is not always easy, since each partner has different technical capabilities. For example, connecting to a supplier with limited technical capabilities can be costly, complicated, and time-consuming.

    Telephone, fax, and e-mail remain the most common methods of communication. Even though electronic data interchange (EDI) may be a more reliable communication resource, it is cost-effective only in high-volume situations that involve large expenditures.

    How, then, can you extend the benefits of streamlined collaboration to your entire ecosystem? How can you get all your partners to connect automatically, as well as efficiently, and cost-effectively to your internal processes?

  • 20

    SAP 2009 / Page 20

    SAP SNC Supply Network Collaboration

    1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

  • 21

    SAP 2009 / Page 21

    Architecture SNC 7.0

    SNC Server

    RDBMS

    SAP SCM Basis 7.0

    SAP SNC 7.0

    Application / Database Server

    SCM Server

    RDBMSApplication / Database Server

    SAP SNC as Add-on SAP SNC as part of SCM

    SAP NW 7.01SAP NW 7.01

    liveCache

    SAP SCM 7.0 ServerSCM, EWM, SNC, EM

    SAP SCM Basis 7.0

    Advantages

    It is possible to use other SCM components on the instance Mandatory for some functionalities (i.e. extended planning features) Supported Upgrade from a existing SAP ICH/SNC 5.0 / 4.1

    Advantages Less support package implication smaller system and hardware requirements Separation SNC vs. SCM-Planning for a DMZ

    Risks No supported upgrade path to a full SCM server No full functionality

    SAP SNC can be deployed on SCM Server or as stand alone SNC

    For details please refer to the SNC 7.0 Master Guide

    Please not that stand alone SNC is only supported for Supplier Collaboration

  • 22

    SAP 2009 / Page 22

    Architecture SNC 7.0

    Example: SAP SNC as stand alone SNC for a Supplier Collaboration

    SNC Server

    SAP SCM Basis 7.0

    SAP SNC 7.0

    SAP NW 7.01

    ERP Server

    SAP ERP 6.0

    SAP NW 7.01

    Master data

    Transactional data

    SAP NW 7.01 usage type PI

    Supplier

    Supplier(Webinterface)

    For details please refer to the SNC 7.0 Master Guide

  • 23

    SAP 2009 / Page 23

    Landscape Example SNC 7.0

    SAP SNC is available for many platforms*

    SCM Server

    RDBMS

    SAP SCM 7.0SCM Server

    Application / Database Server

    Frontend SAPGui 7.1NW Business Client V1.0Web BrowserMS IE, Firefox

    MS Server2003

    MS XP Prof.

    MS Vista32/64

    MS SQLDB2OracleMax DB

    WindowsAIXHP-UXSolarisLinux Suse

    * For details please refer to the product availability matrix The availability is limited from the NW platform

    SAP NW 7.01

    liveCacheWindowsAIXHP-UXSolarisLinux Suse

    For more information on topics discussed in this lesson, see the following references:Master Guide for SAP SNC 7.0 http://service.sap.com/instguides -> mySAP Business Suite Solutions -> SAP SCM

    -> SAP SNC Using SAP SNC 7.0Upgrade Master Guide for SAP SCM 7.0 http://service.sap.com/instguides -> mySAP Business Suite Solutions -> mySAP

    SCM -> Using SAP SCM 7.0 ServerMaster Guides for Industries (Using SNC 7.0) http://service.sap.com/instguides -> Industry Solutions -> Industry Solution

    Master Guides -> SAP for Automotive/High TechSecurity Guide for SAP SNC 7.0 http://service.sap.com/securityguide -> SAP Supply Chain Management SAP

    SNC Component Security GuideSolution Operation Guide for SAP SNC 7.0 http://service.sap.com/instguides -> mySAP Business Suite Solutions -> SAP SCM

    -> SAP SNC Using SAP SNC 7.0

  • 24

    SAP 2009 / Page 24

    TransactionalData

    Integration Aspects: SAP SNC

    ERP

    Master

    Data

    TransactionalData

    CIF

    SNC

    PI

    cFolders

    BW

    EP

    APO - DPAPO - CMDS

    EM

    APO - gATP

    APO - Dplymt

    APO Alloc.

    EM

    PI

    BW

    SNC SUPPLIER COLLABORATION

    SNC CUSTOMER COLLABORATION

    TransactionalData

    Extractor

    UI

    UI

    Extractor

    Internal

    Internal

    Via ERP SO

    Internal/RFC

    Internal/RFC

    Internal

    Process Infrastructure is the new name for XI (Exchange Infrastructure)

    EM = Eventmanagement

    BW = Business Warehouse, now part of SAPNetweaver

    ERP is backend system (Enterprise Resoure Planning), it could be a non-SAP or SAP system

    APO-CMDS = Advanced Planning Optimizer - Collaborative management of delivery schedules

    DP = Demand Planning

    Dplymt = Deployment

    gATP = global Available to Promise

    Alloc. = Allocation

    EP = Enterprise Portal

    CIF = Core Interface

    SNC = Supply Network Collaboration, new name for ICH (Inventory Collaboration Hub)

  • 25

    SAP 2009 / Page 25

    SAP SNC Supply Network Collaboration

    1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

  • 26

    SAP 2009 / Page 26

    Key Trends Impact On Business/ Technology Agenda

    Impact of Shifting Emphasis Toward Network of Business Partners

    Connecting business partners faster, easier and cheaper is a growth industry Software and technology providers have to offer a menu of ways to connect business partners Connectivity and on-boarding methods will likely become standardized over time

    Increased need forcollaboration with partners

    Synchronization and datasharing more intense

    Partner on/off boarding

    Our customers tend to focus on core capabilities, like design and marketing, and outsource things likemanufacturing, distribution and warehousing

    Outsourcing of non-coreactivities is an everincreasing trend...

    Globalization is everincreasing, both on thesales of finished goodsand sourcing of rawmaterials...

    Innovation and coming up with newproducts faster, is a clear trend in most manufacturing industries

    Competition is drivingproduct life cycles to become shorter and shorter...

    Market Trends and Opportunities SAP SNC Collaboration and the Emergence of the Network of Business Partnersare Becoming Competitive Advantages for Most Companies

    1

    2

    3

    Collaboration becomes key

    Operate in a 360global world

    Product InnovationBecomes key

    Increased need for real-timeand accurate communication of data

    Technology and standards everincreasing

    Shorter life cycles drive theneed for better collaborationwith partners involved in theprocess

    Both small, medium and large enterprises are becomingincreasingly global, managing bothsupplier and customer relationshipacross continents

    It is all about adaptability and managing the network SAP Network Supply Collaboration

    Enhance visibility & productivity - Real time visibility of inventory, incoming supply, component consumption and carrier information

    Increase Control & Flexibility - Change orders based on customer demands, and adjust supply chain strategies (e.g. postponement)

    Collaborate successfully - Reduce lead times & cycle times through improved collaboration and communication

    Increase Customer Service - Fulfill customer orders on time, with the correct items and quantities (Perfect order)

  • 27

    SAP 2009 / Page 27

    Main Features: Example: $2 Billion IM&C Company (from VE Study)

    Reduced manual labor for supplier communication

    Reduced errors in supplier communication

    Reduced call volume from suppliers about PO, GR, etc.

    Quicker communication with suppliers

    Enabling proactive exception-based management via alerts

    Reduced inventory levels

    Reduced expediting

    Reduced planning efforts via an SMI process

    $1.5 million (annual)

    $2.5 million (one-time)

    $0.9 million (annual)

    Total Savings:

    $2.5 million one-time savings$2.4 million annual savings

    Main Value-Adding Capabilties for SAP SNC Supplier Collaboration Change Your Communication Method: Switch from fax, phone calls and e-mails as the main communication methods with your suppliers. By using

    SAP SNC, suppliers will have a one-stop-shop web-based tool to access and respond to supply chain, which will reduce human errors, increase speed and accuracy with which data is exchnaged between youand your suppliers. In addition, suppliers can respond to data feeds from SAP SNC, actions that will update your ERP system for you and in real time.

    Have Suppliers Plan and Replenish for You: SAP SNC has capabilities that allow you to change the business process, allowing for supplier

    responsability of planning and replenishment instead of yourself. SAP SNC offers business processes (likeSMI and DCM) that shift the replenishment actitivities from you to the supplier, still keeping your ERP in synch.

    Enable Lean, or Pull-Based, Systems with Your Suppliers: SAP SNC also comes with capabilities that allow you to push thru any lean manufacturing initiatives you

    may out to your external suppliers. Consumption-based replenishment capabilities exist in the shape of Kanban triggers and reorder point driven logic.

    Monitor and Collaborate with Contract Manufacturers and Other Network Partners: Contract manufacturers represent a special type of supplier, and along with 3PLs, is something SAP SNC

    has special capabilities to handle. Collaborate on a more granular level using BOMs and phases (routing) and find out where a certain product orders is in the process, and when it might be finished. Gain insightsto the supply and demand situation at a contract manufacturers plant, or a 3PL plant participating in theextended supply chain network.

    Complement Existing EDI Connections with Collaborative Planning: Typically, large manufacturing companies that use SAP ERP (R/3) have hundreds, if not thousands, of

    direct material suppliers. A well-know CP industry SAP customer has around 5000 direct material suppliersin North America, around 200 of them are connected via traditional EDI connections (i.e. the customersERP system talks directly to the suppliers ERP system). That means around 4800 suppliers are notconnected via EDI, and forecasts and orders are shared via e-mail, excel sheet attachments, phone calls, fax or simpler supplier portals over the web. However, when looking at the 200 suppliers that areconnected via EDI, most of the data shared is of short-term, execution character (POs, Change POs, PO Confirmations, Ship Notifications, etc) and not much data is shared on a longer term horizon. Therefore, SAP SNC can be positioned and used as the forecast, or mid to long term, collaboration platform that canexist in parallell to the existing EDI connection. SAP SNC and EDI connections can be complementary.

  • 28

    SAP 2009 / Page 28

    SAP SNC (ICH) Reference Customers

    Customer Snapshot: 425 + Global Customers 200 + Active Customers Appr.75 Live Customers Appr.25 Reference Customers

  • 29

    SAP 2009 / Page 29

    SAP SNC Supply Network Collaboration

    1. SAP SNC Fundamentals2. Customer Collaboration 3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

  • 30

    SAP 2009 / Page 30

    Roadmap: Functional Growth SAP SNC

    SAP ICH 4.0

    Initial Supplier-Side Capabilities

    2003 2004 2005 2007

    SAP ICH 4.1

    SAP ICH 5.0

    SAP SNC 5.1

    SAP SNC 7.0

    2008

    Addition of Customer Collaboration

    Initial Outsourced Mfg Capabilities

    Enhanced Customer Collaboration & Outsourced Mfg

    Outsourced Mfg & Usability Focus

    Key functional delta additions per release of SAP ICH/SNC Supplier Collaboration: SAP ICH 4.0:

    Release Process SMI Process ASN

    SAP ICH 4.1: PO Process Dynamic Replenishment Process (Forecast Comparison) Packaging and Label Printing (w/Bar Codes) added to ASN

    SAP ICH 5.0: Kanban Process Contract Manufacturing Purchasing Process (Subcontract POs in SAP ERP terminology) Supply Network Inventory Process (supply, demand and inventory monitoring across plants and

    business partners) Delivery Control Monitor Process Goods Receipient User Menu (allows for dedicated user menu for goods receipients, like 3PLs or

    contract manufacturers)

    SAP SNC 5.1: Work Order Collaboration Process Invoicing (to support existing purchasing processes, closing the loop in the procure-to-pay cycle) Harmonization, automation and increased flexibility for SMI scenarios (more configuration, more

    algorithms, more automation capabilities) PO Work List (to enable mass maintenance of PO items) EM integration PLM cFolders integration (tighter integration with cFolders)

  • 31

    SAP 2009 / Page 31

    Roadmap: SAP SNC (1)

    SAP ICH 4.0Supplier Collaboration:

    Supplier-side Collaboration Processes:

    SMI

    Release Process

    ASN Maintenance

    Alert Monitor

    SAP ICH 4.1Supplier Collaboration:

    Basic Purchase Order Process

    Forecast Visibility Collaboration

    SMI Process enhanced w/ PO

    ASN Enhancements (Packing)

    Release Process Comparison

    BW Reporting KPIs

    Customer Collaboration:

    Responsive Replenishment Process New VMI Solution

    SAP ICH 5.0Supplier Collaboration: Supply, Demand & Inv.

    Visibility at Contract Mfg. Subcontract POs w/ comp. Kanban Replenishment PO Process Improvements SMI Process For Multiple

    Suppliers Delivery Control Monitor

    Reorder PointCustomer Collaboration: Responsive Replenishment Enhancements for SAP AFS

    SAP SNC 5.1Supplier Collaboration: Work Order Collaboration for Contract Mfg Milestone Tracking & Component Consumption Supply, Demand & Inv Monitoring for Contract Mfg Multiple Business Partner Visibility Invoice and Credit Memo PO Process User Productivity Work List SMI Process Replenishment Automation & AlgorithmsCustomer Collaboration: Min/Max Replenishment ATP, gATP Checks Demand Collaboration Configurable Process Flows

    2003 200720052004

    The SNC Roadmap shows that the processes, functions & features delivered by SAP Supply Network Collaboration (SNC) were/are constantly growing.

    Please note that SNC is the new name for ICH (Inventory Collaboration Hub)

  • 32

    SAP 2009 / Page 32

    Roadmap: SAP SNC (2)

    SAP SNC 7.0

    Supplier Collaboration:

    Manufacturer Part Number Extension

    File Transfer functionality

    PO Enhancements

    Supplier Self-Service User Management & Activity Monitoring

    Quick View In-Context Dashboard w/ Business KPIs and Drill-Down

    User Roles by Business Process, incl. Role-Based Menus

    Displaying of Product Configuration data and Batch Classification data

    SOA Enablement - Continued

    Improved Integration with ERP to come with ECC 6.0 (various EHPs)

    Various Incremental Process Enhancements

    2008

    SAP SNC 7.0 Features:

    Major Developments in SNC 7.0 are derived out of the High Tech industry.

    Some are coming from the Mill and Consumer Goods area. CP: Enhancments in Customer Collaboration Mill: Displaying of Product Configuration data and Batch Classification data

  • 33

    SAP 2009 / Page 33

    Roadmap: SAP SNC (3)

    SAP SNC 7.0

    Outsourced Manufacturing: New stock categories in SAP SNI and new SNI Inventory Overview screen SAP ERP and SAP SNC Integration Enhancements in Outsourced Manufacturing External Processing with WO Batch tracebility in SAP SNC Introduction of Work Order Worklist in SAP SNC

    Customer Collaboration:

    Decision Support Enhancement of RR Overview Monitor, added key figures

    Additional Mass Maintenance of Location Products Added

    Additional Rounding Logic for Replenishment Orders and TLB

    Added selection criteria, safety stock calculations and improved promotion handling

    2008

    SAP SNC 7.0 Features:

    Major Developments in SNC 7.0 are derived out of the High Tech industry.

    Some are coming from the Mill and Consumer Goods area. CP: Enhancments in Customer Collaboration Mill: Displaying of Product Configuration data and Batch Classification data

  • 34

    SAP 2009 / Page 34

    EhA EhBEhC EhDEhE EhF

    EhA EhBEhC EhDEhE EhF

    MES Integ. EBPP

    Sales order

    HCM forms

    Credit Report

    Budget Executi

    on

    Enhancement Package

    User interface

    Functionality

    Enterprise services

    Sales orderManagement

    User interface

    Enterprise services

    Functionality

    Traditional Upgrades Enhancement Packages

    All or none Affecting the enterprise Requires thorough regression testing Business case for entire release

    Pick and choose Self-contained innovation Isolated testing effort Business case for target process

    Efficiency to Drive InnovationEnhancement Packages Eliminate Major Upgrades

  • 35

    SAP 2009 / Page 35

    Driving Synergies Across the SuiteDelivering on one Date, Innovation Across the Applications

    20102009200820072006

    EhP1ERP 6.0

    CRM 7.0

    PLM 7.0

    SCM/SNC 7.0

    SRM 7.0

    Sustainability platform

    Supply chain & manufacturing adaptiveness

    Advanced shopping experience...

    Holistic planning and performance mgmt

    Demand-driven product & supply chain effectiveness

    Product as a service management

    Integrated product development

    Supply chain efficiency

    World-class operations

    (Selected) enhancements* across the Suite

    Business Suite release strategy

    Synchronized Suite release

    Enhancement Packages across the Suite

    * Topics subject to change

    EhP2 EhP3 EhP4 EhP5 EhP6

    EhP1

    EhP1

    EhP1

    EhP1

    EhP2

    EhP2

    EhP2

    EhP2

  • 36

    SAP 2009 / Page 36

    Continuous Innovation Around a Stable Core

    Stable core defined to be SAP ERP 6.0 today, extended to core applications of SAP Business Suite in 2008

    Leverage proven functionality

    Continuous innovation delivery via enhancement packages, selectively adoptable

    Continuous service enablement

    Uniform availability of industry best practicesStable Core

    (SAP enhancement package 1 for)SAP NetWeaver 7.0

    (as foundation for SAP Business Suite)

    SAP Business Suite

    ERP 6.0

    CRM7.0

    PLM7.0

    SCM7.0

    SRM7.0

    Industries

    SAP Enhancement Packages for Applications

  • 37

    SAP 2009 / Page 37

    You are now able to:

    z Explain the SAP SNC 2008 Essentialsz Know the SAP SNC 2008 Market & Customer

    situation

    z Understand the SAP SNC 2008 High level delta functionality

    SAP SNC Supply Network Collaboration

  • 38

    SAP 2009 / Page 38

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